How do I create a compelling value proposition for insurance? - Showtime Digital

How do I create a compelling value proposition for insurance?

26 September 2018 Read 720 times

What’s in it for me?

Finance companies like insurance and mortgage brokers have great difficulty in separating themselves from their competitors.

They typically are underwritten by the same companies ie. Lloyds, Allianz, CBA and ANZ.

The challenge is much of the industry are left brain logical thinkers and buyers aren’t.

The larger companies who have the budget to influence through TVC's can create huge cut through. But even then, companies can still get it wrong by thinking buyers see the situation just as they do. Insurers promote 'save $100 with us' while the mortgage sector has reduced themselves to displaying comparison rates. It's all very bland.

In contrast, the more ambitious companies create real brand equity. Captain Risky and Aussie's, 'We'll save you' come to mind.

As a rule, these two industries feel the only point of difference they have is to tell consumers their service is better, or they're more flexible. But what does better service look like and what do you specifically mean by being flexible? To the consumer, it's all blah blah and a wasted opportunity.

But what if you took your focus off service and flexibility and focused on the emotional aspect of the decision instead? What if the emotional response of the consumer brought far better outcomes and potentially helped reduce churn? What if this strategy was also cost-effective?

The following data comes directly out of Google Ads and proves if we have a strong value proposition and we can express this in terms of what’s in it for me for the consumer you are on your way to increasing conversations with potential clients and reducing your cost per acquisition.

This insurance strategy achieves a cost per conversion of $15.01 (supplied by Google Ads). To be clear this is car insurance, home insurance, travel and landlord insurance.

Insurance outcomes

From a budget of only $12,500, 819 conversions were secured. That's exciting given much larger competitors like Youi, Bingle and Budget Direct are happy to pay this and much more just for a click.

Insurance detail

The strength of the strategy means 73.64% of consumers feel the value proposition is compelling enough to convert on their first interaction.

Now where’s that value proposition…I know I put it somewhere?

Let’s just clarify, a Value Proposition is not simply a bunch of words sitting on your website to encourage consumers. It’s about the entire service delivery. It’s WHO you are…not what you do.

This process is fun, but you’ll need to take a step back from what you’re currently doing and look at the landscape overall.

The two keys to get you started is to look at your buyers and your competitors.

  • Buyer Personas - First you need to understand what’s important to your buyer. Identify the various buyer personas you have and rank their needs, pains and gains against each.
  • Competitors - Because it’s a competitive landscape you also need to understand how consumers investigate the category. What are their options when finding a supplier and how are your competitors speaking to their needs.

Our goal is not to emulate the competition, but we also don’t want to do the same as they are either. And this happens all too often in finance.

If this is starting to sound difficult that’s ok, we all have the same challenge when we’re too close to the situation. The best way to navigate this is to bring in someone who has no cognitive bias or political ties. Fresh eyes ask different questions, and this is how you find new answers. If you'd like us to take a fresh approach, get in touch.

Steve Palmer

Steve Palmer is the Joint Founder and CEO of Showtime Digital. Steve has been in B2B sales since 1997 but influencing people and behavioural science has been a long-term passion.

The magic he brings to his clients is in knowing how to engage their audience. His goal is to help businesses understand the deeper reasons of why consumers convert online with them.